ThomasThere is a lot of excitement for #offshore #wind but it still needs innovation to become cost competitive.
Paul Eastwood@thomas offshore wind is cheaper than onshore and solar in the UK. Adoption rates will presumably brings offshore costs down in the US.
@pauleastwood very cool.
Are those years at the top? I am not sure I understand your chart though. Is it saying that in '26/'27 offshore is expected to be £37.35 £/MWh? I would like to see more information.
I am in California where they just opened the north coast for Offshore wind. Our sea floor is... not as fun.
@thomas yes, sorry, not an easy table to follow without some explanation. Here's a good article that should help. The columns are years when the contracts are expected to start operating. The plants haven't yet been built.
@thomas and here are the full details to accompany the data. The table is from 'Auction results'.
https://www.gov.uk/government/collections/contracts-for-difference-cfd-allocation-round-4
@pauleastwood Thank you.
Do you know/think those prices also reflecting subsidies for building Offshore wind?
@thomas depends on the market price for electricity. If this is lower than the prices set at auction (those in the table) then the generators receive a top-up to the market price. If the market price is higher, the generators pay back the difference. With the current high prices for electricity in the UK, the generators would not receive a subsidy if they were operating today.
The system is a little complicated but nicely explained in the article I linked to.